International Relations
Relationship with the United Kingdom
The Isle of Man is an internally self-governing dependent territory of the British Crown and is politically and constitutionally separate from the United Kingdom.
As a Crown Dependency, the Isle of Man is independent in all matters except foreign affairs, immigration and defence which are the responsibility of the UK Government and for which the Isle of Man pays an annual contribution. Most notably, the Isle of Man is fiscally independent of the United Kingdom and is free to set its own taxes.
Relationship with European Union
The relationship of the Isle of Man with the European Union is set out in Protocol 3 to the UK's Act of Accession annexed to the Treaty of Accession 1972, by virtue of which the United Kingdom became a member of the European Community. The Island is not a member state of the European Community, nor is it an associate member.
The effect of Protocol 3 is that the Island is part of the customs territory of the European Union. Therefore, the common customs tariff, levies and other agricultural import measures apply to trade between the Island and non-member countries. There is free movement of goods between the Island and the European Union in industrial and agricultural products, but not free movement of persons, services or capital.
European Community law has no direct application to the Island, except in very limited circumstances. The Island's relationship with the European Union cannot be changed unless Protocol 3 is changed; this would require the unanimous decision of all member states of the European Union.
Organisation for Economic Cooperation and Development (OECD)
Through the United Kingdom, the Island is a member of the OECD; thus its financial products and services have access to markets where OECD membership is an entry requirement.
The Isle of Man is not on the OECD's black list of "non-co-operative tax havens".
Financial Assistance Task Force (FATF)
FATF is a G7 body established to examine measures to combat world-wide money laundering. FATF has commended the Isle of Man's money laundering legislation and implementation and regards the Island as a co-operative jurisdiction. The FATF Annual Report 2000-2001 stated that, "the standards set in the Isle of Man are close to complete adherence with the FATF's 40 recommendations".
Financial Stability Forum (FSF)
In March 2000, a working group under instructions from the Financial Stability Forum completed a report addressing the implications of offshore financial centres on global financial stability. The offshore jurisdictions considered were grouped into three categories reflecting their perceived quality of supervision and degree of co-operation. The report listed the Isle of Man as one of only eight offshore jurisdictions which it considered fell into the high standards group. Offshore centres in the high standards group were rated as having supervisory practices consistent with their relative size and a level of co-operation better than other offshore financial centres.
The World Trade Organisation (WTO)
The Isle of Man has in place all the legislation necessary to comply with the requirements for membership of the WTO and the agreement has now been extended to the Isle of Man. |
